Contribution To The Economic Growth Of Shanghai Information Services

In recent years, information service industry has become one of the industries that have fastest development speed, most dynamic environment and most knowledge and intelligence intensity. It is getting more and more important in service sector. There is no doubt on its even brighter future. With this background, Shanghai, a bridge between China and the rest world, has incomparable location advantage to develop information service industry and should put great effort into it. Since 2000, Central government as well as Shanghai local government has launched many policies to encourage developing information service industry. At present, Shanghai's information service industry has established almost complete regime, working system and management model. The scale of the industry is keeping increasing. Therefore, scientific and precise measurement of the development of information service industry is very important and imminent today.On the one hand, most scholars use the input-output table to analyze the association of different industries, few uses the quantitative model to estimate the contribution rate; the other hand, many industries are using information service as an intermediate input, which makes the indirect contribution to the economy can't be ignored.Based on the above, this article tries to extract the input data of information service from the input-output table. Then, we use the extended production function to estimate the contribution of information service industry. The main findings are as follows. Firstly, the direct contribution rate is 0.71% and the indirect contribution rate is 2.31%, i.e., the total contribution rate is 3.02%. Secondly, the elasticity of capital input, labor input and information service input is 0.3,0.5 and 0.2 respectively. The labor input contributes the most to the economic growth. Thirdly, the overall trend of the information service to the economic growth is upward, but the contribution is too small.For a long period of time in the future, the development of information service industry would be encouraged and supported by the country. The growth of information service industry plays an important role in the promotion of basic industries, progression of social economy and growth of the service industry.